On 9 March 2026, the New Zealand Government introduced the Employment Leave Bill to Parliament. If enacted, the Bill will repeal and replace the Holidays Act 2003 and largely reflects changes signaled by the Ministry of Business, Innovation and Employment (MBIE) in policy announcements last year.

The Bill’s stated aim is to create a simpler, more streamlined leave framework that gives employers and employees greater certainty about their entitlements and obligations.

As the Bill progresses through Parliament, its content may change:

• The Employment Leave Bill, introduced on 9 March 2026, will replace the Holidays Act 2003 and aims to deliver a simpler, more predictable leave system for employers and employees.
• The new regime will commence two years after Royal assent for most sectors, while the state schooling sector will transition 10 years after Royal assent.
• The Bill creates three types of hours – standard, additional and casual – which determine how leave is earned and paid.
• Leave will accrue in hours from day one, with new rules for annual leave, sick leave, alternative leave, bereavement leave, and family violence leave, and a new “otherwise working day” test for public holidays.
• Leave payments will shift to hourly calculations. A 12.5% leave compensation payment will apply to additional and casual hours, and the Bill introduces a process intended to support remediation of past Holidays Act underpayments.
• The Bill is awaiting its first reading, and its content may...

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